Question
Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,270 in the Americas region. Chester wants to have an extra
Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,270 in the Americas region. Chester wants to have an extra 10% on hand above their forecasted units in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Cake's Fulfillment After Adjustment have to be in order to have a 10% reserve of units available for sale? All numbers in thousands (000). a. 1,054 units b. 1,397 units c. 1,270 units d. 1,181 units
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